WSEAS Transactions on Business and Economics

Print ISSN: 1109-9526
E-ISSN: 2224-2899

Volume 16, 2019

Notice: As of 2014 and for the forthcoming years, the publication frequency/periodicity of WSEAS Journals is adapted to the 'continuously updated' model. What this means is that instead of being separated into issues, new papers will be added on a continuous basis, allowing a more regular flow and shorter publication times. The papers will appear in reverse order, therefore the most recent one will be on top.

Volume 16, 2019

Comparative Study of Sharia and Conventional Stock Mutual Fund Performance: Evidence from Indonesia

AUTHORS: Ibnu Khajar, Hersugondo Hersugondo, Udin Udin

Download as PDF

ABSTRACT: The purpose of this study is to determine whether there are any differences between the conventional and sharia mutual fund performance and also to investigate the differences between the sharia index (JII) and conventional index (IHSG). The population of this study includes all stock mutual funds that have a cooperation with Indo Premier Securities for a distribution to investors. Based on the purposive sampling method, the sample is 65 consisting of 14 sharia shares fund (SY) and 51 conventional stock fund (SU). The empirical results show that the sharia mutual fund performance is lower compared with a conventional mutual fund. Furthermore, the sharia and conventional stock mutual fund performance are better than the JII and IHSG.

KEYWORDS: sharia mutual fund, conventional mutual fund, sharia index, conventional index


[1] Abdullah, F., Hassan, T., & Mohamad, S. (2007). Investigation of performance of Malaysian Islamic unit trust funds. Managerial Finance, 33(2), 142-153

[2] Ashraf, D. (2013). Performance evaluation of Islamic mutual funds relative to conventional funds: Empirical evidence from Saudi Arabia. International Journal of Islamic and Middle Eastern Finance and Management, 6(2), 105-121.

[3] Boo, Y. L., Ee, M. S., Li, B., & Rashid, M. (2017). Islamic or conventional mutual funds: Who has the upper hand? Evidence from Malaysia. Pacific-Basin Finance Journal, 42, 183-192.

[4] Elfakhani, S., Hassan, M. K., & Yusuf, S. (2013). Comparative Performance of Islamic Versus Secular Mutual Funds. In 12th Economic Research Forum Conference in Cairo, Egypt (pp. 19-21).

[5] Fadillah Mansor, M. I. B. (2017). Evidence of Risk and Return Performance of Islamic Mutual Funds: The Case of Malaysia. Advances in Islamic Finance, Marketing, and Management, 81–101.

[6] Gallefoss, K., Hansen, H. H., Haukaas, E. S., & Molnár, P. (2015). What daily data can tell us about mutual funds : Evidence from Norway. Journal Of Banking FinaNCE, 55, 117–129.

[7] Hayat, R., & Kraeussl, R. (2011). Risk and return characteristics of Islamic equity funds. Emerging Markets Review, 12(2), 189–203.

[8] Indonesia, R. (1995). Republic Of Indonesia Law No. 8 Year 1995 Regarding Capital Market.

[9] Indonesia, R. (2015). Regulation Of The Financial Services Authority Number 19/Pojk.04/2015 About Publishing And The Requirements Of Sharia-Compliant Mutual Funds.

[10] Indonesia, R. (2018). Statistics Of Sharia Capital Market.

[11] Investment, D. (2018). Mawar Mutual Fund, 96.

[12] Irfan, U. S., Junaid, I., & Muhammad Faizan, M. (2012). Comparative Valuation between Islamic and Conventional Mutual Fund. International Research Journal of Finance and Economics, 96(May), 28–34.

[13] Kraeussl, R., & Hayat, R. (2008). The performance of Islamic equity funds, (February 2011). Retrieved from

[14] Market, I. C. (2018). IDX Monthly Statistics, 27(2).

[15] Norman, N. bt, Almsafir, M. K., & Smadi, A. (2013). “Comparative Study of Conventional and Sharia-based Unit Trusts Funds Performance of Public Mutul Berhad.” Australian Journal of Basic and Applied Science, 7(9), 354–363.

[16] Othman, J., Asutay, M., & Jamilan, N. (2018). Comparing the determinants of fund flows in domestically managed Malaysian Islamic and conventional equity funds. Journal of Islamic Accounting and Business Research, 9(3), 401-414.

[17] Rafay, A., Javed, U., & Izhar, M. A. (2017). Investigating The Performance Of Islamic Mutual Funds : Evidence From An Emerging Economy, 7(2), 234–241.

[18] Rao, Z.-R., Tauni, M. Z., Iqbal, A., & Umar, M. (2017). Emerging market mutual fund performance: evidence for China. Journal of Asia Business Studies, 11(2), 167–187.

[19] Thavaramara, M. T. (2010). Progress and Issues in Capital Markets Integration : ASEAN Experience, (February).

[20] Yunanto, A., Daryono, Wahyudi, S., Ghozali, I., & Udin. (2017). The Value Relevance on Retail Trade Industry: Evidence from Southeast Asian Countries. International Journal of Civil Engineering and Technology, 8(12), 519-526.

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 16, 2019, Art. #10, pp. 78-85

Copyright Β© 2018 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution License 4.0